This makes no sense to me, since they're teaching the same syllabus and the same skills, but this is what I'm told.
Its because they have not taken the CPL written exams. Its an ICAO requirement to have demonstrated CPL level knowledge; the LAPL is not an ICAO licence. They have still done the same FI Course to the same standard. 30 years ago a potential FI demonstrated CPL knowledge by taking a pre entry exam before embarking on the FI Course.